Question 1

Is the new tax regime better than the old regime in FY 2026-27?

Accepted Answer

For most salaried people the new regime wins, because there is zero tax up to 12,00,000 of taxable income (Section 87A rebate) and a higher 75,000 standard deduction. The old regime can be cheaper only if you claim large deductions such as HRA on rent, home-loan interest and full 80C/80D. Compare both with your own numbers in the planner.

Question 2

How much salary is tax-free in FY 2026-27?

Accepted Answer

Under the new regime, taxable income up to 12,00,000 is tax-free via the Section 87A rebate. With the 75,000 standard deduction, a salaried person can earn up to about 12.75 lakh with zero income tax.

Question 3

How can I pay zero income tax on a 14 lakh salary?

Accepted Answer

Route enough of your CTC into tax-free buckets: employer EPF, employer NPS under Section 80CCD(2), and meal coupons, to bring taxable income to 12,00,000 or below. The planner shows the exact monthly amounts to set in payroll.

Question 4

Is employer NPS tax-free, and how much?

Accepted Answer

Yes. Employer NPS contribution under Section 80CCD(2) is tax-free up to 14% of basic salary in the new regime (10% in the old regime).

Question 5

Are meal coupons tax-free?

Accepted Answer

Yes. Employer meal cards are tax-free up to 200 per meal (about 1,05,600 a year) under the Income-tax Rules 2026, and this applies under both the new and old regimes.

Question 6

What is the standard deduction for FY 2026-27?

Accepted Answer

The standard deduction is 75,000 in the new regime and 50,000 in the old regime, for salaried individuals and pensioners.

Question 7

Is my own EPF contribution tax-free in the new regime?

Accepted Answer

Only the employer's EPF contribution is tax-free in the new regime. Your matching 12% is paid from post-tax salary. In the old regime your own EPF counts toward the 1,50,000 limit under Section 80C.

Know your real in-hand salary. Pay the lowest legal tax.

Salary tax planning in India: FY 2026-27 (new & old regime)

Key facts (FY 2026-27)

Frequently asked questions

Guides

Income tax by salary